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Anglo American plans break-up after rejecting £34bn BHP bid

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Anglo American plans break-up after rejecting £34bn BHP bid

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Anglo American plans to break itself up as the embattled mining group tries to win over shareholders following its rejection of a £34bn takeover bid from rival BHP.

In a series of sweeping changes to the 107-year-old mining company, Anglo said on Tuesday that it would sell or demerge its De Beers diamond business, its South African-based Anglo American Platinum operation as well as its coking coal assets.

London-listed Anglo will instead focus on its copper, iron ore and crop nutrients businesses. BHP, the world’s biggest miner, has set its sights on securing Anglo’s copper business, which is expected to boom as the world decarbonises.

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Since rebuffing two approaches from BHP, Anglo’s chief executive Duncan Wanblad has been under intense pressure to set out the group’s future as a standalone group.

Laying out the proposed changes, Wanblad said: “These actions represent the most radical changes to Anglo American in decades.” They will result in “a radically simpler business [that] will deliver sustainable incremental value creation”.

Anglo said it would also pull back on spending on Woodsmith, a flagship project in the UK designed to create a vast underground mine producing a yet-unproven fertiliser. Instead of spending $1bn a year to build the mine by 2027, only $200mn will be spent next year and nothing in 2026.

Shares in Anglo fell 0.5 per cent to £27.03 in early trading on Tuesday. BHP’s improved offer valued Anglo at £27.53, up from approximately £25 in its original bid.

Anglo shareholders have predicted that the group would struggle to sustain its current structure. They have long complained that the value of Anglo’s coveted copper mines in Latin America has been obscured by its other lacklustre operations, particularly its platinum and diamond divisions.

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As part of its bids, BHP has a provision requiring Anglo to spin off its two Johannesburg-listed subsidiaries, Anglo American Platinum and iron ore miner Kumba.

Following Anglo’s announcement on Tuesday, shares in Anglo American Platinum, which produces a range of metals in South Africa, fell 7 per cent. Anglo intends to keep Kumba Iron Ore as part of a “premium” iron ore division that would also include its Minas Rio mine in Brazil.

Alongside dismantling the structure it has maintained for years, Anglo also vowed to cut a further $800mn of costs annually on top of $1bn already earmarked.

Anglo provided few details on where the cost savings would come from, saying it would “need to consider its global workforce arrangements to realise the opportunities for its employees and to ensure delivery of the accelerated strategy”.

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The promise of the fifth estate is being squeezed

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The promise of the fifth estate is being squeezed

JD Vance told a funny story at the American Dynamism Summit in Washington this week. He recalled a Silicon Valley dinner he and his wife Usha attended, before he became vice-president, where the talk had been of machines replacing humans in the workforce. According to Vance, an unnamed chief executive from one giant tech company said that the jobless of the future could still find purpose in fully immersive digital gaming. “We have to get the hell out of here. These people are effing crazy,” Usha texted him under the table.

Why Vance thought it a good idea to tell this story is puzzling, given it contradicted the central theme of his speech — but at least it got a laugh. As Usha Vance colourfully implied, the worldview of the techno-libertarians and ordinary workers appears antagonistic. But her husband’s main message was the opposite: that the tech sector and ordinary workers had a shared interest in promoting the “great American industrial renaissance”.

Vance’s speech was a clear attempt to reconcile the two warring wings of President Donald Trump’s political movement: the tech bro oligarchy — or broligarchy — led by Elon Musk, and the Maga nationalists animated by Steve Bannon. Bannon has denounced globalist tech leaders as anti-American and described Musk as a “truly evil person” and a “parasitic illegal immigrant”.

Vance declared himself a “proud member of both tribes”. He may be right that Musk and Bannon have much in common in spite of their pungent differences. They are both elitist anti-elitists with a shared mission to overturn the power of the administrative state and the mainstream press.

Historians once described the three ancient estates of power as the clergy, nobility and commoners. A fourth estate — the press — was later added. And a fifth estate — social media — has since emerged. But the fifth estate could be seen as a software update of the third one: commoners armed with smartphones. In that view, Bannon may be a tribune of the third estate while Musk is a champion of the fifth. In the Trump movement, the two have fused.

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In his book The Fifth Estate, William Dutton argued that social media represented a new and mostly positive form of power allowing individuals to access alternative sources of information and mobilise collective action. He sees Greta Thunberg, the Swedish schoolgirl who emerged as a global environmental campaigner, as its poster child. “It is the scale of the technology that changes the role of the individual in politics and society,” he tells me.

Mark Zuckerberg, Meta’s chief executive, has also declared the fifth estate to be a global public good giving voice to the once-voiceless. “People having the power to express themselves at scale is a new kind of force in the world,” he said in 2019.

That all sounds great in theory. But the negative effects of social media have become increasingly striking: misinformation, incitement to hatred and the emergence of an “anxious generation” of teenagers. Social media has mutated from a technology of liberation to one of manipulation. It has corroded the political process and been hijacked by anti-establishment populists. 

One study of 840,537 individuals across 116 countries from 2008 to 2017 found that the global expansion of the mobile internet tended to reduce approval of government. This trend was especially marked in Europe, undermining support for incumbent governments and boosting anti-establishment populists. “The spread of the mobile internet leads to a decline in confidence in the government. When the government is corrupt people are more likely to understand that the government is corrupt,” one of the co-authors of the paper Sergei Guriev, now dean of London Business School, tells me.

Populist politicians have been quick to exploit voter dissatisfaction aroused by social media and use the same technology to mobilise support in cheap and interactive ways. “It is normal for anti-elite politicians to use new technologies that are not yet embraced by the elites,” Guriev says. 

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The fifth estate has certainly rattled the old gatekeepers of information in politics and the media. But new digital gatekeepers have emerged who control who sees what on the internet. Trump’s “first buddy” Musk bought Twitter, now X, which promotes or demotes posts in unaccountable ways. The free-speech absolutists who denounce moderation and government “censorship” are often providing cover for more insidious forms of algorithmic control.

Progressive campaigners acknowledge they are on the back foot on social media but they have not abandoned hope. “It is more important than ever to fight for the future. We need to use these tools as well as we can,” says Bert Wander, chief executive of Avaaz, a crowdfunded global campaigning platform. With 70mn members in 194 countries, Avaaz mobilises action against corruption and campaigns for algorithmic accountability, as included in the EU’s Digital Services Act. “We need to communicate in technicolour with all the emotion and resonance that the nationalist populists use,” Wander says.

For such progressives, three bracing truths emerge from this debate. The power of the fifth estate is a disruptive force that is not going away. Populists have been particularly smart in their use of it. And to compete, progressives drastically need to up their game.

john.thornhill@ft.com

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‘See you in court’: Teachers union vows to fight Trump’s Education Department order

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‘See you in court’: Teachers union vows to fight Trump’s Education Department order


The president plans to sign an executive order on Thursday attempting to dismantle the Education Department. A leading teachers union is already preparing to challenge him.

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WASHINGTON – “See you in court.”

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That was the one-sentence retort from a leading teachers union Wednesday following news that President Donald Trump planned to sign an executive order Thursday aimed at eliminating the U.S. Department of Education.

Randi Weingarten, the head of the American Federation of Teachers, vowed to sue the administration if it moved forward with a mandate to obliterate the agency’s limited federal role in the nation’s schools.

The action is unlawful, she and others have argued, because only Congress has the power to close federal agencies. Still, the Trump administration has slashed the Education Department’s workforce in half, which is prompting widespread concern from students and schools about reductions in vital services. Democratic state attorneys general and advocates for students with disabilities sued last week to stave off those cuts.

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Multiple polls have shown that the idea of abolishing the Education Department is unpopular among Americans.

Teachers unions have been at the forefront of litigation against the Trump administration’s education policies in recent weeks and months. The AFT filed a separate suit this week accusing the Education Department under Trump of “effectively breaking the student loan system.”

The president plans to sign his much-touted executive order alongside Republican governors Thursday afternoon at the White House. Lawsuits will likely follow once the full text of the order has been released.

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Zachary Schermele is an education reporter for USA TODAY. You can reach him by email at zschermele@usatoday.com. Follow him on X at @ZachSchermele and Bluesky at @zachschermele.bsky.social.

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NASA Astronauts Don’t Receive Overtime Pay for Space Mission But Get $5 a Day

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NASA Astronauts Don’t Receive Overtime Pay for Space Mission But Get  a Day

If your eight-day work trip was unexpectedly extended by nine months, you might expect to rack up some overtime pay.

Not so for Suni Williams and Butch Wilmore, the NASA astronauts who spent 278 extra days on the International Space Station after their spacecraft malfunctioned. On Tuesday, they splashed down off the Gulf Coast of Florida, ending a saga that had captivated the country since last summer.

But despite their far-flung destination, and the danger and romance of space travel, when it comes to pay, Ms. Williams and Mr. Wilmore are treated effectively like any other government employee who takes a business trip to the next state over.

“While in space, NASA astronauts are on official travel orders as federal employees,” Jimi Russell, a spokesman for the agency’s Space Operations Mission Directorate, said via email.

Ms. Williams and Mr. Wilmore were essentially unable to leave their workplace, a cluster of modules going around the Earth every 90 minutes, for more than nine months. But astronauts aboard the International Space Station receive no overtime, holiday or weekend pay, Mr. Russell said.

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Their transportation, meals and lodging are covered, and like other federal employees on work trips, they receive a daily “incidentals” allowance, Mr. Russell said. This is a per diem payment given to employees in the place of reimbursements for travel expenses.

The incidentals allowance for travel to any location is $5 per day, Mr. Russell said.

This means that in addition to their annual salary — about $152,258, according to NASA — Mr. Wilmore and Ms. Williams received around $1,430 for their 286 days in space.

What incidental expenses might Mr. Wilmore and Ms. Williams have incurred while in orbit 250 miles above Earth? It’s unclear. Usually, these are “fees and tips given to porters, baggage carriers, hotel staff, and staff on ships,” according to the U.S. General Services Administration.

Ms. Williams and Mr. Wilmore did not exactly see their extended stay as a hardship. “This is my happy place,” Ms. Williams told reporters in September. “I love being up here in space. It’s just fun, you know?”

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Still, if a $5 per diem seems low for a job that causes enough muscle and bone loss for you to need a gurney when you return to Earth, spare a thought for Clayton Anderson, the NASA astronaut who spent 152 days aboard the International Space Station in 2007.

Mr. Anderson said he received a per diem of only about $1.20, or $172 in total.

Being an astronaut was amazing and his dream job, Mr. Anderson said on social media in 2022, “but it IS a government job with government pay.”

He added: “I would have done WAY better with mileage!”

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